Gradient Tactical Rotation

The Gradient Tactical Rotation (GTR) portfolio is a rules-based investment strategy designed to generate excess returns over global stock market indices. Equity markets around the globe often display wide dispersions of return over time. This creates the opportunity to make tactical investment decisions and rotate client funds to areas of strength around the globe.

The tactical investment process identifies broad geographic investment markets (and their subsectors) where price momentum is greatest. During periods of sustained negative decline in global stocks, the GTR can move 100 percent to cash. The portfolio utilizes a quantitative, two-factor approach in its tactical investment process and deploys a methodology that selects the most optimal global asset class sectors. The GTR is actively managed to maximize risk-adjusted return over full market cycles.

Gradient Core Select

The Gradient Core Select is an actively managed, diversified US stock portfolio. The portfolio is designed for long term capital appreciation by selecting strong businesses trading at reasonable prices.

The Gradient Core Select invests in mid-to-large capitalization US stocks. The portfolio is intended to be a core US equity market allocation and will provide return primarily through stock price appreciation. Companies are selected using a rigorous investment process designed to identify business trading at a discount to their long term value. The Core Select will invest using a bottom up stock analysis approach paired with a risk-managed approach to industry sector allocation. This process is designed to ensure the active risk is commensurate with our highest conviction opportunities.

The Core Select invests in 50-80 US stocks. Individual positions are managed to reduce single stock exposure risk. Position sizes will be actively managed in accordance with the fundamental opportunity combined with our risk-managed sector selection approach. Sector allocations will remain within reasonable proximity of the Global Industry Classification Sector (GICS) weightings of the S&P 500. Decisions to exit holdings will be based on a company no longer meeting our investment criteria or valuation framework.

Gradient 50 Dividend Portfolio

Investing in dividend-paying stocks provides investors the potential for long term capital appreciation along with recurring income.

The Gradient 50 (G50) investment process selects 50 US, dividend paying stocks for inclusion in the portfolio. Our proprietary investment process looks for financially strong companies that generate ample cash flow and are exceeding analyst expectations. Each company selected not only pays a current dividend but, in our opinion, have the ability to grow that dividend over time.

The Gradient Investment Management team selects the final 50 stocks and diversifies the portfolio across multiple industry sectors. The portfolio is actively managed to maintain both fundamental and dividend objectives. The G50's combination of stock selection, portfolio construction and active management delivers a diversified stock portfolio that focuses on long term growth and dividend income.

Gradient 33 Growth Portfolio

The Gradient 33 (G33) Portfolio is a portfolio of 33 equally weighted growth stocks. Our rigorous selection process focuses on companies that are growing at a high rate and have demonstrated a sustainable competitive advantage to continue to grow in the future. We balance these 33 stock selections between the small, mid and large capitalization sectors of the market. Doing so gives the portfolio exposure to proven growth companies while participating in the emerging winners of tomorrow. Companies in the G33 Portfolio provide unique, high-demand products and services to the markets that propel this growth and can change the way business is done. Investors wishing to participate in this growth seek outsized gains while understanding the inherent risks that accompany this style of investing. The 33 securities are actively managed and continuously monitored by our investment team.

Gradient Contrarian Choice

The Gradient Contrarian Choice Portfolio is an actively managed strategy designed to deliver long-term capital appreciation. It employs a contrarian strategy, seeking to invest in companies whose prices are temporarily dislocated due to macro or external factors that are out of their control. The goal is outsized returns in the form of price appreciation when these price dislocations revert, or normalize. Investing in contrarian securities can be an ideal investment vehicle to create long-term wealth for investors who have high return expectations and can tolerate a higher level of volatility.

Contrarian investors have historically made their best investments during times of market turmoil. In most markets there tend to be out-of-favor securities or sectors that investors are avoiding at any given time. Often times this creates price dislocations that can produce attractive long term returns when they recover. The Gradient Contrarian Choice Portfolio will deploy an active approach to exploit these opportunities through diligent research in determining if a company’s stock price dislocation is temporary or structural in nature and investing accordingly.

Gradient 40 International

The Gradient 40 International (G40i) is an actively managed portfolio designed to provide exposure to international stocks that provide long term capital appreciation and income through dividends. The individual equity investments are comprised of global industry leaders that are domiciled outside of the United States. Companies will be selected based upon fundamental opportunity but paired with a risk-managed sector and geographic overlay to ensure proper diversification.

The individual company stock investments will be made in American Depositary Receipts (ADRs), which are investments in foreign companies that are traded on U.S. stock market exchanges. ADRs provide U.S. investors access to foreign market stocks and are used for ease of transactions, liquidity, lower administration costs and tax simplicity. A significant difference between international and domestic stocks is the frequency of dividend payments. Many companies in international markets choose to pay dividends semiannually or annually as opposed to the quarterly dividend payments for domestic stocks.

Energy Sector Focus

The Energy Sector Focus Portfolio provides investors with a specific avenue to invest in the energy sector. The strategy’s objective is to provide investors with long-term capital growth by investing primarily in individual stocks in various sectors of the energy complex. The portfolio is actively managed to invest in companies that exhibit financial health and potential prosperity within the energy sector.

Gradient Portfolio Tilt Series

The Gradient Portfolio Tilt Series is an actively managed, diversified asset allocation strategy that utilizes Gradient Portfolios as the underlying investments. The Tilt Series has 4 different series, from Conservative to Growth, that correspond to an investor’s risk tolerance. Then, each series is allocated using “tilts” that select Gradient portfolios that are in-favor based upon the analysis of the Gradient Investment Management Team. The Tilt Series is periodically rebalanced to maintain risk consistency, but is also reallocated opportunistically based upon market conditions and the analysis of the investment team.

ETF Endowment Series

The ETF Endowment Series consists of five portfolio models. These asset allocation portfolios satisfy a variety of risk and return objectives that follow a similar investment philosophy as large university endowment funds. Endowment funds invest in alternative assets like real estate and commodities as a complement to traditional stock and bond allocations. These investments provide greater diversification and are meant to provide a superior risk-adjusted return over a full market cycle. Gradient uses ETFs to provide individual investors lower-cost access to these asset classes.

Fixed Income Series

The Gradient Investments fixed income portfolios are carefully designed for long-term investors seeking current income through a diversified approach. The main objectives of the fixed income portfolios are to provide investors with current income and lower price volatility compared to the stock market. The Gradient Investment team builds diversified portfolios across all fixed income sectors, including assets like US Treasuries, Investment Grade Corporate Debt, Municipal Bonds, International Debt, or High Yield Bonds. Our investment strategy is actively managed and researched to identify fixed income investment opportunities producing a recurring income stream. Gradient Investments utilizes ETFs for bond-based allocations to ensure diversification within bond classes combined with liquidity and price transparency.

Laddered Income Strategy

The Laddered Income Series consists of four portfolio models with varying laddered maturities. The models are constructed by purchasing bond-based exchange traded funds (ETFs) that have fixed maturities of two to five years. After the nearest security matures, the proceeds are reinvested into a new year or they may be left in cash to cover client distributions. The fundamental investment theme behind a bond ladder is diversification by maturity. It also curbs reinvestment risk as the portfolio produces a steady stream of cash flow.

Gradient Stable Value

In times of volatility and stress in the markets, stable assets can provide a safe haven for investors seeking stability. Stable value assets, as a component of a diversified portfolio, can be valuable not only for relative stability, but also as a temporary asset class for near-term distribution needs or as "dry powder" for future investment opportunities. The Gradient Stable Value Portfolio provides a diversified set of liquid, ultra-short maturity investments that are actively selected based upon pre-determined criteria.

The goal of the Gradient Stable Value Portfolio is to provide a conservative asset allocation that exceeds the level of cash yield provided by traditional banks and investment custodians. In that regard, the Gradient Investment Management Team will consider liquidity and stability as the primary investment criteria. This portfolio is not expected to ebb and flow with the market, but rather act as a ballast during times of higher volatility.

Absolute Yield Portfolio

The Absolute Yield is a globally diversified portfolio with a primary objective of income maximization. The Absolute Yield invests in stocks, bonds, and alternative assets with the consistent theme of high-income production. These investments could incorporate such asset classes as high-yield bonds, dividend-paying stocks, real estate, preferred stocks, and senior bank loans. The Absolute Yield will primarily use exchange traded funds (ETFs) to invest in assets with a risk-managed approach but is actively managed to identify attractive opportunities and to optimize yield.

Gradient Socially Responsible

The Gradient Socially Responsible Portfolio is an actively managed, diversified investment approach that is designed to consider socially responsible investments as its primary investable universe.

Socially responsible investing utilizes environmental, social, and governance (ESG) criteria to select investments. Investing in a socially responsible manner seeks to promote positive ESG characteristics while excluding investments that are not aligned with positive ESG criteria. Positive ESG criteria can include such initiatives as: workplace equality, environmentally conscious, cleantech/renewable energy, or positive corporate governance strategies.

The Gradient Socially Responsible portfolio uses exchange traded funds (ETFs) to build a diversified portfolio that aligns with client social values as well as their risk tolerance. Gradient offers 3 distinct socially responsible portfolios that range from conservative to growth allocations, using a mix of stocks and bonds that correspond with positive ESG initiatives.

Precious Metals Portfolio

Owning a diversified portfolio of precious metals as a part of an overall investment strategy can act as a hedge against market turmoil and a potential source for enhanced return. The Precious Metals Portfolio uses exchange traded funds (ETFs) to provide exposure to several different metals, including gold, silver, platinum, and palladium. This portfolio is actively managed to identify and select opportunistic allocations within the investable universe.

Gradient Investments Buffered Index Portfolio

The objective of the Buffered Index Portfolio is to provide market participation with a pre-determined level of downside protection. The pre-defined parameters of the Buffered Index include: the maturity, the index or indices used, the maximum upside participation (cap), the level of downside protection (buffer), and the participation rate. Notes used have pre-determined maturities and proceeds will be paid in cash. Gradient Investments will provide offerings on a recurring basis to invest or roll proceeds from maturing notes.

Dual Directional Buffered Index Portfolio

The Gradient Investments Dual Directional Buffered Index Strategy offers the ability to profit from upside market participation but also provide a pre-determined level of downside protection against volatile markets. Investors in the Dual Directional Buffered Index Strategy can take advantage of market growth up to a pre-determined return cap but also enjoy a defined level of buffer protection against market losses. Further, the Dual Directional Strategy can potentially provide a POSITIVE RETURN even if markets are NEGATIVE.

Designed Income Portfolio

The Gradient Investments Designed Income Portfolio has an objective of providing a recurring income stream with a pre-determined level of downside protection. The portfolio utilizes structured notes that provide pre-determined parameters including: the yield, the maturity, the level of protection, the type of protection, the coupon frequency, coupon contingencies, and call features. Notes will be issued on a periodic basis from investment grade underwriters who are some of the largest financial institutions in the world. Cash coupons are paid periodically based upon pre-determined parameters. Offerings are constructed as point to point solutions but can be liquidated intra-period if necessary. Offerings that mature (or are called) will return principal based on pre-determined parameters and will be paid in cash and placed in the investor account.

Buffered Outcomes ETF Portfolio

The Gradient Investments Buffered Outcomes ETF Portfolio is designed to provide downside protection along with upside participation. In today's environment, investors are looking for alternatives to the traditional stock and bond allocation models. The Buffered Outcomes ETF Portfolio utilizes defined outcome exchange traded funds (ETFs) that provide a defined level of protection (buffer), while providing upside participation up to a maximum level (or cap). The ETFs are traded on exchanges, are liquid, do not mature, and are not subject to issuer credit risk.

The portfolio is actively managed by selecting ETFs that the Gradient Portfolio Management team feels are opportunistic but also diversified and with an ongoing level of risk management and protection. Active decisions for the portfolio could include rotation toward indices with greater potential upside, adjusting protection levels based upon market outlook, and sources of relative value within the defined outcome investable universe.

Digital Discovery

Digital technology has evolved at an accelerating pace. This transition is revolutionizing the way the world communicates, how we analyze and interpret data, purchase goods and services, and introduces completely new technologies to the world.

The Gradient Investments Digital Discovery Portfolio is designed to invest in companies that are involved in key themes within the technology and digital revolution. The Digital Discovery Portfolio will invest in exchange traded funds (ETFs) leveraged to areas such as: cryptocurrency, blockchain technology, metaverse, and non-fungible tokens (NFTs).